Financial Services AgencyFSA Weekly Review No.525

February 16, 2023

What’s New on the FSA Website

Week of February 3, 2023 - February 9, 2023

This page contains the latest in events, developments, and updates to the FSA website.

Public Comments

February 3, 2023 Publication of the finalized "Order to Amend the Regulation for Enforcement of the Deposit Insurance Act" after public consultation
<Summary>
The FSA published the finalized "Order to Amend the Regulation for Enforcement of the Deposit Insurance Act" after public consultation.
In light of expanding the scope of eligibility for participation in the Zengin System (which is a nation-wide online network system for banks handling domestic funds transfers ) to include funds transfer service providers, the finalized Order newly specifies funds transfer service providers as those specified by Cabinet Office Orders and Ministry of Finance Orders prescribed in Article 69-4, Paragraph 1 of the "Deposit Insurance Act" (settlement creditors who are allowed to offset settlement obligations with insolvent financial institutions under certain conditions pursuant to the special provisions of the "Bankruptcy Act," etc. pertaining to settlement obligations stipulated in the same paragraph) by providing amendments to Article 24-2 of the "Regulation for Enforcement of the Deposit Insurance Act."
The finalized Order was enforced on February 3, 2023.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r4/sonota/20230203/20230203.htmlopen new window
February 3, 2023 Publication of draft "Cabinet Orders to partially revise the Order for Enforcement of the Act on Prevention of Transfer of Criminal Proceeds", etc. for public consultation
<Summary>
The proposed revisions include the following:

・ Among the businesses conducted by issuers of high-value electronic transferable prepaid payment instruments and Electronic Payment Instrument (i.e. stablecoins) Exchange Service Providers, etc. that become newly subject to the Act on Prevention of Transfer of Criminal Proceeds (APTCP), i.e. the Specified Business Operators, defined businesses subject to the obligation to prepare and maintain transaction records, etc., i.e. the Specified Business, and transactions subject to the obligation to conduct ID verification at the time of transactions, etc., i.e. the Specified Transaction.

・Under the newly introduced travel rules for the transfer of electronic payment instruments (i.e. stablecoins) and crypto assets, the items to be notified, and further defined obligatory measures to adequately perform the verification at the time of the transaction and report suspicious transactions such as collecting information and retaining records when conducting transactions with unhosted wallets and other such mechanisms. (*see the Attachment on PDFthe Travel Rules and countermeasures on a transaction involving unhosted wallets).

・ Defined methods and standards in conducting due diligence on the status of AML/CFT of the counterparty (e.g., that the counterparty has AML/CFT framework, assigns an AML/CFT Officer in charge to accurately perform the verification at the time of the transaction, etc. and is under appropriate supervision by the regulators) with respect to the obligation to confirm when a newly established Electronic Payment Instrument Exchange Service Provider or  Crypto-asset Exchange Service Provider concludes an alliance agreement related to the transfer of electronic payment instruments or crypto-assets.

Comments due at 19:00 on March 5, 2023.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r4/sonota/20230203-2/20230203-2.htmlopen new window

Press Releases

Councils

February 6, 2023 Publication of the agenda and handouts of the fourth meeting of the "Working Group on Financial Institutions' Efforts towards the Decarbonization of the Economy"
<Summary>
The FSA published the agenda and handouts of the fourth meeting of the "Working Group on Financial Institutions' Efforts towards the Decarbonization of the Economy," which was held on February 7, 2023.
In the fourth meeting, the Working Group members resumed the discussion on Scope 3 subsequent to the session at the third meeting, after which some of the guest practitioners introduced NZBA (Net-Zero Banking Alliance) and NZAOA (Net-Zero Asset Owner Alliance) to the working group members, followed by a discussion.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/singi/decarbonization/siryou/20230207.htmlopen new window
February 3, 2023 Publication of the agenda and handouts, as well as the outlines of proceedings of the first meeting of "Advisory Council on Scenario Data for Climate Change Risk and Opportunity Assessment" (provisional English title)
<Summary>
The FSA, as a co-host member of the secretariat* of the "Advisory Council on Scenario Data for Climate Change Risk and Opportunity Assessment" (provisional English title), published the agenda and handouts, as well as the outlines of proceedings of the first meeting of the Advisory Council, which was held on December 22, 2022.
The Advisory Council is aimed at exchanging opinions on climate change-related data among stakeholders in the public and private sectors regarding their needs, challenges, and future directions to appropriately use climate change-related data, thereby effectively responding to climate change.
In the first meeting, the Advisory Council members confirmed the objectives of the Advisory Council and exchanged opinions on climate change-related initiatives that have been taken so far and are to be taken by the respective ministries and agencies.
 

*The secretariat of the Advisory Council is co-hosted by the FSA, Ministry of Education, Culture, Sports, Science and Technology, Ministry of Land, Infrastructure, Transport and Tourism, and Ministry of the Environment, with the representatives from the financial and non-financial sectors as Advisory Council members, and representative officials from the relevant government ministries and agencies as observers.


The original press releases are available in Japanese at the following URLs.
https://www.fsa.go.jp/singi/scenario_data/siryou/20221222.htmlopen new window
https://www.fsa.go.jp/singi/scenario_data/gijiyousi/20221222.htmlopen new window

Securities

February 9, 2023 Administrative penalty charge against DDS, Inc. for making false statements in its securities reports and so forth
<Summary>
On February 8, 2023, the FSA issued an order to impose an administrative penalty charge against DDS, Inc. for making false statements in its securities reports and so forth, in violation of the "Financial Instruments and Exchange Act."

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r4/shouken/20230208-1.htmlopen new window

Insurance

February 3, 2023 Rescission of an order for the administration of Pets Best Japan Co., Ltd.'s business and property by the receivers and receiver representatives of the said insurer 
<Summary>
On February 3, 2023, the Kanto Local Finance Bureau rescinded an order for the administration of Pets Best Japan Co., Ltd.'s business and property by the receivers and receiver representatives of the said insurer pursuant to the "Insurance Business Act."
The rescission of the order was made in response to the transfer of business and insurance policies from Pets Best Japan Co., Ltd. to Aflac Pet Small Amount and Short Term Insurance Co., Ltd. as of January 31, 2023.
An outline of the rescission of the order is available only in Japanese on the Bureau's webpageopen new window.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r4/hoken/20230203.htmlopen new window

Others

February 8, 2023 Call for participation in the consultation meeting for an annual update of EDINET Taxonomy
<Summary>
The FSA announced the call for participation in the consultation meeting for an annual update of EDINET Taxonomy to be held on March 9, 2023.

The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/search/20230208.htmlopen new window
February 7, 2023 FSA will host "International Conference on Sustainability Disclosure".
February 7, 2023 Updated statistics of money lending business 
February 7, 2023 Online events (hosted by the FSA) to promote the matching of human resources for regional corporate management
<Summary>
On February 11, 2023, the FSA held online events to further enhance understanding of the current status of and challenges in matching human resources* at regional financial institutions, as well as of the significance and rewarding aspects of working for a regional company.
 

*The FSA has been promoting the project for matching human resources for regional corporate management to enhance human resource intermediary functions of regional financial institutions and to create a new inflow of professionals from major corporations to small- and medium-sized enterprises, thereby encouraging professionals with expertise at major corporations to play an active role in the respective regions. 


The original press release is available in Japanese at the following URL.
https://www.fsa.go.jp/news/r4/ginkou/20230207/20230207.htmlopen new window

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